ACWA, Sumitomo to Develop Uzbek’s Clean Energy Projects

Uzbekistan, a former Soviet Republic and Central Asian nation, is leaving no stone unturned in its efforts to become carbon free by 2050 and has taken up several renewable energy projects, including solar and wind farms, and pumped storage hydropower plants to achieve the goal.

The UAE’s Masdar is designing, building, and operating three solar power plants, two with a capacity of 220 MW and third one with a capacity of 457 MW.

These plants are Jizzakh Solar Project in Djizzakh region, Samarkand Solar Project in the Samarkand Region and the 457 MW Sherabad Solar Project in the Surkhandarya Region and funded by European Bank for Reconstruction and Development.

While the Tashkent Riverside project includes a solar power plant and the largest battery energy storage system in Central Asia, Uzbekhydroenergo and French renewables firm EDF Renewables are developing a 200 MW pumped storage hydropower plant in the Tashkent region.

Uzbekistan’s goal is to generate 40% of its electricity from renewable sources by 2030 and the government is also working to establish a regulatory regime to attract private investment into the energy sector.

ACWA and Sumitomo

Joining the list of foreign companies developing renewable energy in Uzbekistan, the Saudi-listed ACWA Power, the world’s largest private water desalination company, leader in the energy transition and first mover into green hydrogen, said that it has recently signed a joint development agreement with Japan’s Sumitomo Corporation, a Fortune 500 trading and business investment company, to develop key renewable energy generation and storage projects in Uzbekistan.

The projects—which include Sazagan 1 and 2—are located in Samarkand and each consists of 500MW solar photovoltaic (PV) and 334 MW battery energy storage systems (BESS). Both sub-projects are expected to achieve commercial operations between Q2 of 2026 and Q2 of 2027.

The second set of projects includes Kungrad 1, 2 and 3 wind projects, located in Karakalpakstan in Uzbekistan. Each sub-project comprises of 500 MW wind power plant and 100 MW BESS, with commissioning planned in Q2 of 2028.

The projects in Samarkand and Kungrad have a combined investment value of $4.2 billion and are among the largest clean energy and storage projects in Uzbekistan.

The joint development agreement will see ACWA Power divest 49% of its stake in the Samarkand and Kungrad projects to Sumitomo Corporation. The partnership follows agreements announced in May 2024 on the side lines of the Saudi-Japan Vision 2030 Business Forum, which encouraged collaboration on renewable energy and water solutions.

Supporting Energy Transition

Thomas Brostrom, Chief Investment Officer of ACWA Power, said that this joint development agreement with Sumitomo Corporation showcases ACWA Power’s commitment to supporting Uzbekistan’s impressive and ambitious energy transition.

He said that integrating battery storage with ACWA Power’s solar and wind projects in Samarkand and Kungrad enhances grid reliability and maximises renewable potential. The agreement also aligns with their growing Uzbekistan portfolio, which includes wind power plants in multiple regions and the country’s first green hydrogen plant that will produce 3,000 metric tons of green hydrogen per year.

“These, alongside other innovative energy investments across the country, illustrate ACWA Power’s commitment to supporting Uzbekistan’s emergence as a regional leader in sustainable energy development,” he added.

JP Tiwari, Vice President & Head of Business Development Central Asia, Caucasus, Turkey, ACWA Power, said that Uzbekistan is ACWA Power’s second-largest market in terms of investments, demonstrating our ongoing commitment to the country’s energy transition and sustainable development targets.

“By leveraging our partnership with Sumitomo Corporation, we are further cementing this commitment as we pursue the largest clean energy projects in the country, providing accessible, affordable, and sustainable energy for the people of Uzbekistan,” he added.

Koichi Taniguchi, General Manager of Overseas Energy Solution SBU, Sumitomo Corporation, said that this joint development of renewable projects in Uzbekistan in collaboration with ACWA Power aligned with their company’s target in power generation business to provide a stable supply of the energy, essential for the economic and industrial development of local communities, through the projects which are in line with host countries’ energy transition policy.

“We aim to contribute to the sustainable growth of the country and communities in Uzbekistan through this collaboration with ACWA Power,” Taniguchi added.